Gadgets & Electronics, Telecom & Wireless

Lenovo To Cut More Staff From Moto Smartphone Unit

Lenovo Group will implement an employee layoff program, but the total number of employees affected will be no more than 2% of its employees worldwide.

However, most of the employees affected by the layoffs will be from Moto smartphone unit, but the company did not reveal the detailed number. Lenovo Group reportedly has 55,000 employees around the world.

This marks another round of employee layoffs for Lenovo following its biggest purge in 2015. In order to improve its financial position, Lenovo announced plans to cut 3,200 employees worldwide last year, of which 500 were from Motorola Mobility.

Lenovo Group said in a statement that this latest round of employee layoffs is a part of its strategy to integrate the smartphone businesses of Lenovo and Motorola. At present, Lenovo is optimizing organizational structures and simplifying product lines to better compete in the global smartphone market. Lenovo added that though they will cut employees of the Moto smartphone unit, the company will maintain Motorola Mobility's headquarters in Chicago.

In October 2014, Lenovo acquired Motorola Mobility from Google for USD2.91 billion, making this Chinese company the third largest smartphone maker in the world.

With this acquisition, Lenovo intended to keep a leading position in the global smartphone market. However, instead of bringing improvement to Lenovo's mobile business, it caused a drag and lots of Motorola executives departed after the acquisition.

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